By the end of Thanksgiving week, all my people were totally out of the market. They know when I say “everybody out of the pool”; it means go to 100% cash. At that time, it was obvious to me that it was getting harder and harder for the “Dow 30 video Bad Boys” to paint the tape; the volume of down stocks vs. the volume of up stocks was getting greater and greater.
In my last blog written on Nov 19th but not entered on wordpress.com, YouTube, twitter, Google until Nov 21st because it was my daughter’s birthday Nov 20th and I wanted to wait till that day passed so I could write a story about my memories of her growing up.
In that blog I mentioned that I thought the “Dow 30 video Bad Boys” were manipulating the Dow High frequency Traders, Flash Boys and recently laid off and possibly the Hedge Funds Crooked FX Traders.
the manipulation was obvious to me by the internals of the market on Nov 13th which I said “I couldn’t swallow”
Well, on Monday Dec 1st, the dam finally burst the tape painters ran out of the paint. They couldn’t support the Dow any longer. The down volume was almost 4 to 1 over up volume. But the real tipoff was the S and P 500 Down -14.12. That translates to a Dow down at least 140 to 160 points, not down 52.44.
It’s not secret, on any given day. Just multiply the S+P, up or down by 10 and more often than not.
It will tell you what the Dow is really doing, give or take a little. Try it for a while, you’ll be amazed at how often the S and P times 10 = the Dow.
Example- market (Lose Fri Dec 12, Dow Down -315, S and P 500 -33.
I’ve been watching this game for about 50 years now and no one can tell me anything different. Even the new lows are now out numbering the new highs. It’s not hard to keep track of these numbers. I just hit yahoo.com Finance; they do a pretty good job of giving you all the numbers and much more.
My friends, specially the “Oracles of Juniper Valley Park” often say, Frank why can’t we just buy and hold like Warren Buffet, instead of jumping in and jumping out of the market.
Warren Buffet is not a Buy and Hold guy; he is a buy for life guy. He holds stocks longer than most people live.
Let’s admit it, he is a genius. Do you think it’s easy buying a stock and holding it for 30 or 40 years and feeling confident that that company will still be in business 50 years from now.
He is one of a kind, once in a lifetime phenomena. Hey, we got in the market over 4 ½ years ago and didn’t sell until this July, 6 month ago, called for an October Blood bath. Almost got it. Bought stocks back on the selloff, which paid off and most recently I asked “everyone to get out of the pool” the week before Thanksgiving. I only do what the market tells me to do.
Now you know how important market internals can be.
“If Santa Claus should fail to call Bears may come to broad and wall”
I don’t know the accuracy ratting on that theory but it must have worked enough times for people on Wall St. to still quote it.
It’s the Santa Claus Rally
Like I said over and over, I still think the economy will continue to do better but we are not out of the woods yet, malls are still folding, retail sales have slowed. The employment picture is brighter but wages are stagnant, financial engineering has gone as far as it can, the con summer is or almost is taped-out or will be after Christmas, car sales are great but that’s because the average car is more than 10 years old and when your monthly car repair bill are more than the monthly payment to buy a new car, you don’t have much of a choice , plus dealers are giving cars away with subprime lending practices and with all this, not to mention geo-political risk, Ebola, and Isis . I just think the market is a little ahead of itself.
The Russian mafia
You know this guy Puttin has some pair of huevos (eggs) as they say in Peru.
Kruschev, he was a clown. I can still picture him at a United Nations meeting pounding his shoe on the table.
Puttin’s determined. Most of my working life I lived in Rego Park Queens NY and every day I would walk down 63rd Drive to the E train to go to work. There were 3 or 4 Russian restaurants on 63rd Drive and there still are 3 or 4 even today, naturally they were closed in the morning but coming home at nite they were open and more often than not, there was a bunch of Russians always all men, loudly arguing on the sidewalk. I mean heated arguments I always got the feeling there was more than just food cooking inside. These guys looked tough with their fortunes and assets tanking with the Russian ruble. I wouldn’t be surprised if they made an attempt on Puttin’s life unless he has included them on some end game benefits.
Will Tesla be the Tucker auto of this century?
Do you remember the Tucker? No. Do you remember the movie “The Tucker”?
I saw it with my son Greg, well the Tucker was a car way ahead of its time and the Detroit car makers put up enough road-blocks to stop it from getting off the ground, not too unlike todays Tesla, plus if the price of oil stays down here or goes lower.
Americans are slow to change old habits specially habits they enjoy, like owning and driving muscle cars that go from 0 to 60 in 3 or 4 seconds and really sounds great.
I know how much Americans love their cars I know because I lost a lot of real estate and other toys that I enjoyed and the thing I miss the most and think of the most is my 1986 Corvette, in fact I keep a picture of it in my wallet till this day. The picture was taken with me and my youngest son Greg standing by it.
Water, water everywhere but not a drop to drink
I don’t know who said it, if you do please tell me.
Well, rising water levels offshore and lowering levels onshore. California thinks their drought will end soon ha! I don’t believe in Global Warming, it’s just a cycle. Do you know that they found dinosaur bones and fossil trees and leaves in the Artic where snow has melted and exposed these things?, it must have been very warm there at one time and the same time snow and ice are accumulating in other parts of the world. What I do think has happened , is that the earth has shifted its axis, a little bit North and a little bit East, making California now part of the desert and also causing the earth to move up and under a lowering jet-stream causing severe winters to occur further south in the US.
I think they should build desalinization plants in very town that is on the ocean in California. The plants don’t have to be right on the beach, just water pipeline in the ocean extending to the plant a mile in land. Hey! It beats drinking toilet water and having water wars.
Caution. 10% of my emails incoming and outgoing are not being transmitted. It’s an international problem.
Thank God I can finally stop smoking in a painless and happy way. Palm Beach Vapors is coming out with E cigarettes with cannabis oil. Wow!, who is going to want to smoke regular cigarettes with this available.
Sorry the company is not public, that’s the first thing I checked.
NASA claims they would find aliens within 20 years. Why does our government and their agencies that IRS, CIA, and other pools of idiots think that the citizens of this great country are stupid. Do you know how much money has been spent, covering up Roswell for decades? I always believe they existed and I know most Americans do also. If you don’t believe in aliens, just checked out the last 5 or 6 appearances of Harry Reid and listen to the things he said, out of this world.
Again I don’t got good grammar and I don’t got good spelling, plus my wife who is nice enough to type my blog, is Peruvian and don’t got good English and I don’t speak Spanish. Most of the time is the “I love Lucy Show” around here, with Lucy and Ricky yelling at each other and I love it.